Cheap Goods and Consumer Waste

Original article (in Vietnamese): https://vnexpress.net/hang-gia-re-va-rac-tieu-dung-4808880.html

In Japan, Temu penetrated the market in July 2023. I first learned about Temu due to a series of ads inserted on YouTube, Netflix, or Google with high frequency.

Source: Pandaily

Nearly a year has passed, and what Temu has achieved in Japan remains at the level of local crazes. Just searching "Temu" on Google Japan reveals countless articles reviewing the quality, reliability, and safety of this e-commerce platform.

Japan is a demanding market. Buyers are interested not only in price but also in product quality and reviews. Shock discount strategies are not very effective in Japan. Tricks to increase reviews also do not receive sympathy, and even cause a backlash. I have tried scrolling through reviews from customers who have purchased items many times, and most are negative comments about the products.

But in some other markets, Temu has had certain success. Two years ago, Temu entered the US. After just a few months, this app topped the list of free app downloads on both major platforms, the App Store and Google Play.

In reality, Temu's business model is not very different from e-commerce sites from China like Shein, Wish, or AliExpress. The special point that makes Temu attract great attention in the US—besides discount policies and promotional campaigns—lies in the price.

In a recent survey conducted by Numerator, nearly half of the participants knew about Temu through social networking sites. Among them, 40% of Temu's customers use TikTok daily. Grasping the tastes of young people is what makes Temu successful.

Microsoft research shows that in just 15 years from 2000 to 2015, the "attention span" of consumers decreased by 25% to 8 seconds. This figure for a goldfish is 9 seconds. With a concentration span worse than a fish, a strategy of attracting attention with shocking content is not too hard to understand. Temu has approached users with a series of products that "look delicious"—"don't know if they are nutritious or not"—but most importantly: very cheap.

By 2030, about 75% of consumers in developing markets will be in the age group of 15 to 34. The consumption power of this force is also more than twice that of young people in developed countries. This consumer psychology can be explained by the growth rate of the economy and the improvement in quality and standard of living. The faster the economy grows, the more optimistic young people are about the future and the more heavy-handed they are in spending. Targeting this audience, Temu can ensure a stable number of consumers who spend a lot, spend often, and are loyal to the platform.

However, platforms that encourage "quantity" instead of "quality" like Temu promote a culture of overconsumption—without thinking about long-term consequences. This is one of the main causes leading to the waste crisis and climate change.

In a demanding market that favors quality like Japan, up to about 1.3 million tons of clothes are thrown away annually, most of which comes from the fast fashion industry. This amount of waste not only creates a burden on the waste treatment system but also pollutes water and soil sources, mostly due to cheap textile materials that are not easily biodegradable.

To mass-produce products in huge quantities, these industries consume a large amount of natural resources. Typical are fast fashion products. Growing cotton, for example in India or China, consumes huge amounts of water, depleting natural water resources and leading to water crises in those areas.

According to a 2018 study conducted by Xinjiang University, the amount of water used for cotton cultivation increased from 2 to 21 billion cubic meters in just 30 years from 1989 to 2018. A 2018 Quantis report also pointed out: nearly 80% of environmental pollution in the textile industry is related to polyester—a synthetic material commonly used in fast fashion, as the production process (dyeing, bleaching, and weaving) requires large amounts of petroleum and releases large amounts of greenhouse gases, contributing to climate change.

When considering product quality, most cheap products have below-average quality and a very short life cycle. In developing countries without advanced waste treatment and recycling systems, this huge amount of waste (mainly plastic waste) has only one path: discharged directly into nature, through landfill or incineration.

In modern society, consumers are easily caught up in the cycle of owning and consuming, also leading to stress and financial pressure when shopping uncontrollably. The feeling of happiness from owning new items is only temporary, often followed by emptiness and the need to continue consuming to feel more satisfied.

Looking more broadly at social responsibility, when accessing the homepage, Temu has a notice about a commitment to "sustainable development"; although it takes 10 page scrolls to see this section. Temu says they have a continuous commitment to environmental sustainability by partnering with the organization Trees for the Future in a tree-planting project in the sub-Saharan region of Africa.

Trees for the Future is a reputable organization protected by the United Nations. To date, Temu says nearly 15 million trees have been planted thanks to its contributions. However, few people notice that these trees are actually contributed by consumers, when they agree to pay a small portion of the added value in the order to support the project. This is a way of pushing social responsibility onto customers.

"It's too good to be true" is a common idiom in the world. In Vietnam, when the "landing" is just beginning, users have plenty of time to calmly think before deciding to purchase.

Both delicious and nutritious, certainly not cheap. Goods on the fever-inducing e-commerce platform Temu are extremely cheap. Instead of getting caught up in promotions and short-term fashion trends, prioritizing sustainable products with a long lifespan is a way to help reduce waste and protect natural resources.

Investing in clothes, shoes, or good quality household products not only protects your own health and helps save costs in the long run but also contributes to building more responsible consumption habits for the environment and the community.

By Pham Tam Long